Investors

What do Las Vegas property managers charge?

By Steve Lockhart

The short answer

The standard model is a percentage of the rent the manager actually collects, so if the unit sits vacant, the manager earns nothing that month.

Full answer

The standard model is a percentage of the rent the manager actually collects, so if the unit sits vacant, the manager earns nothing that month. In Las Vegas, 8 to 10 percent is the common range for full-service management of single-family homes and small rentals, and some companies charge up to 12 percent depending on services and property type. On a $2,000 monthly rent, an 8 percent fee is $160 a month and 10 percent is $200.

Leasing and placement fees are where the total bill grows. When a manager finds a new tenant, the leasing fee is often 50 to 100 percent of the first month's rent, a one-time charge that covers advertising, showing, screening, and paperwork. Some companies also charge setup fees, annual renewal fees, or markups on maintenance and repairs. These are normal, but they should be written down before you sign.

The right comparison is total cost for total service. A manager at 8 percent who charges for every maintenance call can cost more than one at 10 percent who includes more. Ask what happens on a vacancy, who handles evictions and inspections, and how their fee applies to maintenance. Then decide based on the full picture, not the smallest percentage on the brochure.

A note from Steve: nothing on this page is investment, legal, or tax advice. Markets move, and every property is different. Run your own numbers on the specific deal, and talk to your CPA and attorney before you commit.

Go a little deeper

Frequently asked

Questions investors often follow up on

Are negative cash flow properties common with management fees?

They can be, which is why the fee belongs in the underwriting before you buy. If a property only cash flows when you self-manage for free, then the realistic version of the deal includes the fee, and that version needs to work on its own.

Do I pay property management fees during a vacancy?

Usually not on the percentage model, since the fee is a percentage of collected rent, which is one reason this model aligns incentives. You may still have fixed or placement-related charges, so the exact vacancy treatment should be in the contract.

What is a leasing fee and when is it charged?

It is a one-time fee for finding and placing a new tenant, typically charged when the lease is signed, and it commonly runs 50 to 100 percent of the first month's rent. It covers advertising, showings, screening, and lease paperwork.

The Lockhart Method

Your Home | My Strategy | Proven Results

My strategy: before you buy, we budget the realistic full-service management cost into the deal, not the brochure percentage. Fee structures differ a lot between companies, so part of the diligence is getting a complete written schedule and comparing total cost, not sticker cost.

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